Fee
Member
Registered: 16th Nov 05
Location: With AK
User status: Offline
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quote:
Originally posted by Colin
Good idea Adam, look into that.
How will capital gains affect it? I thought it came into play on larger amounts? Flats not worth that much, 70k or so.
Your main residence is exempt, but you will pay CGT on any profit made from any additional properties owned
You get an 8k a year allowance though....but still a 40% tax bill is a big deduction
we're keeping every single receipt we get on the aberdeen flat so that eventually we will be able to deduct the money spent on it from the profit made, and because it is in joint names we get 16k exemption
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John_C
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Registered: 5th Mar 03
Location: South east, Bromley
User status: Offline
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from april nxt yr capital gain will be flat rate of 18%
would benefit anyone who has owned a property less than 3 years
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Fee
Member
Registered: 16th Nov 05
Location: With AK
User status: Offline
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shit...I didn't know about that....that's pretty darn good...well, not good, but better than it was
http://www.hmrc.gov.uk/pbr2007/pbrn17.pdf
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Just re the 'renting is dead money' comment.
My mortgage is hundreds of pounds larger than the rental for this flat would be.
So basically I'm paying half as much again to say its mine.
Prices have risen but they're not selling, ie. they have not risen until they sell. When you consider the costs to sell if I decide to do so, I'm probably down after all is said and done.
Renting in my case may have worked out cheaper.
Call it what you like, ultimate it is a cost to live somewhere and your money should be with the cheaper one, not the one which you consider to have a bad name.
Property appreciating is not the done deal it used to be, especially in this climate. There's a lot to be said for being out of the game if I'm honest.
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